Oil will trade between $ 68 and $ 75 in second half of 2021 amid rising demand, Iraqi oil minister says
Oil is expected to trade between $ 68 and $ 75 a barrel in the second half of this year, Iraqi Oil Minister Ihsan Abdul Jabbar said.
Crude prices will stay within this range if Opec and its allies continue to cut production to support markets, Jabbar told reporters in Baghdad on Saturday.
There have also been “new projects in which there is a common interest” between the country and longtime investor Exxon Mobil following announcements last month that the government is considering buying the stake in the company. US company in the West Qurna 1 field, Jabbar said.
“We expect Exxon Mobil to stay in a certain part of Iraq in some investments, it only came out of West Qurna 1,” Jabbar said, quoted by Reuters.
Iraq is the second largest producer in the Opec group with a total production of 3.96 million barrels per day, according to the latest data from the Opec monthly report on the oil markets.
Oil closed three straight weeks of gains on Friday, with international benchmark Brent standing at $ 72.69 and US West Texas Intermediate crude closing at $ 70.91 a barrel.
Crude prices are currently trading higher due to supportive Opec + policies and growing demand as business activity picks up amid declining Covid-19 infection rates in major economies .
Monthly oil market reports from the Energy Information Administration (EIA), OPEC, and the International Energy Agency (IEA) have all painted a favorable outlook for crude oil demand. The IEA now expects global oil demand to return to pre-virus levels by the end of next year.
Opec left its outlook for global demand growth unchanged for the second consecutive month amid easing mobility restrictions.
Oil demand is expected to increase by 6 million barrels per day and total consumption is expected to reach 96.6 million barrels per day, Opec said Thursday in its monthly oil markets report.
“While a return of Iran to the world market in a few months could potentially provide the additional barrels needed for the rest of the year, there is no doubt that the Opec + producer group currently has the capacity and force to dictate the direction of oil. price, “said Ole Hansen, head of commodities strategy at Saxo Bank on Sunday.
Tehran, which resumed negotiations with the United States to reinstate its nuclear deal in April, is seeking to conclude the talks before its presidential election begins on June 18.
“Estimating a price target on a politically controlled commodity like oil is very difficult, and while there is a risk of a short-term correction, the current path points to higher prices with Brent potentially targeting the top of 2019 at $ 75 (per barrel). ), ”Said Hansen.
Demand for jet fuel is also expected to increase as countries reopen their borders, according to a report by Kamco Invest of Kuwait.
Oil majors like Exxon, BP and Chevron are also planning to cut capital investments to manage emissions targets and prepare for a possible slowdown in global oil demand.
“If the trend continues, the oil market is expected to tighten, even if the demand for oil decreases,” Kamco Invest said.